Inflows | Outflows | |
Q1 2018 | 4.638 | 19.697 |
Q2 2018 | 6.102 | 18.574 |
Q3 2018 | 6.616 | 21.085 |
Q4 2018 | 4.098 | 20.213 |
Q1 2019 | 5.208 | 22.87 |
Q2 2019 | 4.776 | 22.605 |
Q3 2019 | 5.897 | 24.045 |
Q4 2019 | 4.829 | 22.265 |
Q1 2020 | 6.154 | 23.505 |
Q2 2020 | 2.738 | 21.015 |
Direct investment income outflows (earned on investments in Ireland by investors located abroad) were €21bn in the second quarter of 2020, a decrease of €2.5bn compared with the first quarter of 2020. This decrease was mostly caused by a decline in income outflows in manufacturing. Direct investment income inflows, which represent income earned abroad by investors located in Ireland, were €2.7bn in the second quarter of 2020, down €3.4bn compared to the first period of 2020. This decrease in FDI income inflows is mainly due to decreases from the redomiciled PLCs.
Income on Debt Outflows | Reinvested Earning Outflows | Dividends & Distributed Branch Profits Outflows | |
Q1 2018 | 1.914 | 10.878 | 6.905 |
Q2 2018 | 2.138 | 13.268 | 3.169 |
Q3 2018 | 2.309 | 14.06 | 4.715 |
Q4 2018 | 2.543 | 13.497 | 4.173 |
Q1 2019 | 2.166 | 10.162 | 10.543 |
Q2 2019 | 2.257 | 18.766 | 1.582 |
Q3 2019 | 2.534 | 18.664 | 2.847 |
Q4 2019 | 2.503 | 15.253 | 4.509 |
Q1 2020 | 2.26 | 9.844 | 11.401 |
Q2 2020 | 2.421 | 17.049 | 1.545 |
The composition of direct investment income outflows is presented in Figure 4.2. Income outflows on reinvested earnings were €17bn in the second quarter of 2020, with dividends & distributed branch profits outflows at €1.5bn and income on debt outflows at €2.4bn. Income outflows on reinvested earnings have increased by €7.2bn from the first quarter of 2020 while dividends & distributed branch profits outflows have decreased by €9.9bn. These large increases and decreases in the series were caused by a classification of funds from reinvested earnings which qualified as dividends in the first quarter of 2020.
Direct Investment Income Outflows | of which Manufacturing | of which Information and Communications | |
Q1 2018 | 19.697 | 11.399 | 3.613 |
Q2 2018 | 18.574 | 10.67 | 2.717 |
Q3 2018 | 21.085 | 12.609 | 3.43 |
Q4 2018 | 20.213 | 11.555 | 3.265 |
Q1 2019 | 22.87 | 14.469 | 3.628 |
Q2 2019 | 22.605 | 10.064 | 6.168 |
Q3 2019 | 24.045 | 14.85 | 2.885 |
Q4 2019 | 22.265 | 12.51 | 3.853 |
Q1 2020 | 23.505 | 14.925 | 4.313 |
Q2 2020 | 21.015 | 13.383 | 4.355 |
Figure 4.3 illustrates a breakdown of direct investment income outflows between two sectors, manufacturing and information and communications. Of the €21bn in direct investment income outflows for the second quarter of 2020, €13.4bn can be attributed to the manufacturing sector and €4.4bn to the information and communications sector. The level of manufacturing direct investment income outflows has decreased by €1.5bn from the first quarter of 2020. The information and communications sector direct investment income outflows are up slightly by €42m from the first quarter of 2020.
Abroad | In Ireland | |
Q1 2018 | -1.781 | -18.521 |
Q2 2018 | -34.574 | -46.009 |
Q3 2018 | 5.681 | -9.525 |
Q4 2018 | 38.82 | 60.425 |
Q1 2019 | 8.131 | 2.01 |
Q2 2019 | -60.549 | -4.229 |
Q3 2019 | 27.796 | 33.194 |
Q4 2019 | 9.764 | 41.473 |
Q1 2020 | -10.626 | 4.076 |
Q2 2020 | -2.92 | 64.428 |
Foreign direct investment (FDI) transactions abroad and in Ireland are shown in Figure 4.4. Direct investment into Ireland increased by €64.4bn in the second quarter of 2020. Direct investment abroad decreased by €2.9bn in the quarter. The large increase in FDI transactions in to Ireland for the second quarter of 2020 pertains to the funding of mergers and acquisitions.
Abroad | In Ireland | |
Q1 2018 | 794.492 | 877.222 |
Q2 2018 | 831.627 | 858.473 |
Q3 2018 | 881.549 | 831.389 |
Q4 2018 | 845.336 | 915.849 |
Q1 2019 | 896.385 | 966.725 |
Q2 2019 | 863.272 | 950.712 |
Q3 2019 | 940.432 | 1004.385 |
Q4 2019 | 966.641 | 1025.789 |
Q1 2020 | 933.951 | 1038.284 |
Q2 2020 | 908.604 | 1096.582 |
The stock of FDI assets held abroad decreased from €934.0bn in Q1 2020 to €908.6bn in Q2 2020, while the stock of FDI assets held in Ireland increased from €1,038.3bn in Q1 2020 to €1,096.6bn in Q2 2020.
Net Direct Investment Income | All Other Current Account Components | Current Account Balance | |
Q1 2018 | -15.059 | 26.222 | 11.163 |
Q2 2018 | -12.472 | 23.268 | 10.795 |
Q3 2018 | -14.469 | 25.485 | 11.016 |
Q4 2018 | -16.115 | 2.758 | -13.357 |
Q1 2019 | -17.662 | 26.815 | 9.153 |
Q2 2019 | -17.829 | -14.773 | -32.602 |
Q3 2019 | -18.148 | 29.757 | 11.609 |
Q4 2019 | -17.436 | -11.129 | -28.564 |
Q1 2020 | -17.351 | 2.794 | -14.557 |
Q2 2020 | -18.277 | 29.939 | 11.663 |
The impact of foreign direct investment income on the current account balance is shown in Figure 4.6. In Q2 2020 net direct investment income (FDI income inflows less FDI income outflows) was -€18.3bn while the net of all other current account components (trade in merchandise, services and other income) stood at €29.9bn. The resultant balance was a current account surplus of €11.7bn.
Net Direct Investment Transactions | All Other Financial Account Components | Financial Account Balance | |
Q1 2018 | 16.74 | -14.341 | 2.399 |
Q2 2018 | 11.435 | 3.748 | 15.181 |
Q3 2018 | 15.206 | -7.036 | 8.17 |
Q4 2018 | -21.605 | -36.308 | -57.913 |
Q1 2019 | 6.121 | 5.171 | 11.291 |
Q2 2019 | -56.32 | -0.434 | -56.754 |
Q3 2019 | -5.398 | 10.193 | 4.795 |
Q4 2019 | -31.709 | 6.068 | -25.641 |
Q1 2020 | -14.702 | -9.436 | -24.138 |
Q2 2020 | -67.348 | 65.32 | -2.027 |
The impact of direct investment transactions on the financial account balance is shown in Figure 4.7. In Q2 2020 there was net negative flows of -€67.3bn in foreign direct investment transactions while the net contribution from other financial account components (portfolio investment, other investment and reserve assets) was €65.3bn. This contributed to a financial account deficit of €2.0bn.
Net Direct Investment Position | All Other Net IIP Components | Net IIP | |
Q1 2018 | -82.73 | -447.291 | -530.021 |
Q2 2018 | -26.846 | -489.081 | -515.928 |
Q3 2018 | 50.16 | -548.458 | -498.298 |
Q4 2018 | -70.513 | -520.273 | -590.787 |
Q1 2019 | -70.34 | -502.33 | -572.671 |
Q2 2019 | -87.44 | -515.66 | -603.1 |
Q3 2019 | -63.953 | -544.811 | -608.764 |
Q4 2019 | -59.148 | -559.635 | -618.782 |
Q1 2020 | -104.333 | -534.819 | -639.152 |
Q2 2020 | -187.978 | -445.748 | -633.726 |
The net stock of foreign direct investment assets in the net international investment position (IIP) is shown in Figure 4.8. In Q2 2020 there was a net direct investment position of -€188bn. Other net IIP components (portfolio investment, other investment and reserve assets) accounted for -€445.7bn. The overall net IIP balance is -€633.7bn.
Direct Investment Position Abroad (left axis) | Direct Investment Position In Ireland (left axis) | Return on FDI Abroad (right axis) | Return on FDI in Ireland (right axis) | |
Q1 2018 | 794.492 | 877.222 | 2.66824587283447 | 8.47447966421271 |
Q2 2018 | 831.627 | 858.473 | 2.74149348205385 | 8.74424705261552 |
Q3 2018 | 881.549 | 831.389 | 2.71419966445427 | 9.4853311746968 |
Q4 2018 | 845.336 | 915.849 | 2.5379257478683 | 8.6880042452413 |
Q1 2019 | 896.385 | 966.725 | 2.45697998070026 | 8.55900074995474 |
Q2 2019 | 863.272 | 950.712 | 2.39762207044825 | 9.12715943419248 |
Q3 2019 | 940.432 | 1004.385 | 2.12444918930874 | 8.93412386684389 |
Q4 2019 | 966.641 | 1025.789 | 2.1424706793939 | 8.9477465638645 |
Q1 2020 | 933.951 | 1038.284 | 2.31875119786798 | 8.90122548358638 |
Q2 2020 | 908.604 | 1096.582 | 2.15913643347377 | 8.28301029927539 |
The rate of return on FDI investment in Ireland and abroad alongside the stock of FDI assets held in Ireland and abroad is presented in Figure 4.9. The return on investments in Ireland is significantly higher than the return on investments made abroad. In Q2 2020 the rate of return on FDI investment in Ireland was 8.3% compared to 2.2% on FDI investment abroad.
Next Chapter >> International Investment Position
Learn about our data and confidentiality safeguards, and the steps we take to produce statistics that can be trusted by all.